LOCAL_STORAGE: command not found // terminal does not boot!

[jm . mercy]

Hello.
I am new to the LTSP local devices, even though my TS works fine. The
need to use local storage (read USB keys) prompted me to install the
local storage part. I am running a 32bit debian etch and followed the
ltsp4.2:
http://wiki.ltsp.org/twiki/bin/view/Ltsp/LTSP-42-LocalDev-DebianEtch
and
http://wiki.ltsp.org/twiki/bin/view/Ltsp/LTSP-42-LocalDev#Troubleshooting
guides. 

However, as soon as I try to boot a terminal, I get the above mentionned
error : "LOCAL_STORAGE: command not found" on the terminal that sits there
and does nothing else. If I remove the line, my terminal boots fine,
obviously without storage. I tried to google and had a look at the list but
found no reference to that problem. What would be the starting point to
find the answer to this question ?
Thank you.

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